South Carolina Life and Health Final Exam 2023
Questions and Answers with complete solution
A closed network plan offers a primary physician copay of $25. If a subscriber chooses
a primary care physician outside of the network, the subscriber will likely pay
100% of the billed amount
What does Coordination of Benefits allow?
Allows the secondary payor to reduce their benefit payments so no more than 100% of
the claim is paid
A waiver of premium rider allows an insured to waive premium payments if the insured
is
completely and permanently disabled
Under the Time Limit of Certain Defenses Provision, a disability policy is incontestable
after it has been in force for a period of
2 years
In what part of an insurance policy are policy benefits found?
Declarations
What type of annuity stops all payments upon the death of the annuitant?
Life annuity
A guaranteed issue insurance policy has no
medical underwriting
What is NOT a qualifying event for Medicare?
Falling below the federal poverty level
An insured has a health plan that pays established amounts in accordance with a list of
injuries, surgical procedures, or other losses. This list is called a
benefit schedule
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What
is this called?
Estate conservation
Ownership of a life insurance policy may be temporarily transferred with a(n)
collateral assignment
Respite care is able to provide
temporary relief to the patient's primary caregiver
What are employers is required to follow ERISA regulations?
A local electrical supply company with 12 employees
A policy illustration given at time of sale does NOT typically include the
names of the beneficiary
How are contributions made to a Roth IRA handled for tax purposes?
Not tax deductible
With respect to small group health benefit plans, a carrier may discontinue coverage or
may refuse to renew such a plan if the employer
fails to pay the premium prior to the end of the grace period
What is an insurance policy's grace period?
period of time after premium is due but the policy remains in force
What isn't considered to be nonforfeiture options available to policyowner
, Reduction of Premium
An insured MUST submit a proof of loss on a health insurance claim within how many
days after the date of loss?
90
What dividend option is taxable?
Accumulation at interest
When calculating the amount of life insurance needed for an income earner, what has to
be determined when using the Needs Approach?
The family's financial objectives if the income earner were to die or become disabled
What statement best describes the relationship between the premiums of a whole life
policy and the premium payment period?
The shorter the payment period, the higher the premium
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase
an extended term insurance option. When the term insurance expires,
the protection ends
What are an applicant's statements concerning occupation, hobbies, and personal
health history regraded as?
representation
Joe has a life insurance policy that has a face amount of $300,000. After a number of
years, the policy's cash value accumulates to $50,000 and the face amount becomes a
$350,000. What kind of policy is this?
Universal Life policy
In most dental plans, a deductible typically is NOT applied to
preventative and diagnostic services
What is considered to be a point of service (POS) plan?
Managed care plan
What is a corridor in relation to a Universal Life insurance policy?
The gap between the total death benefit and the policy's cash value.
Field underwriting performed by the producer involves
completing the application and collecting initial premium
What is the contract called that is issued to an employer for a Group Medical Insurance
plan?
Master policy
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How
much will she pay if she incurs a loss of $1,500?
$700
What is illegal discrimination?
Refusing an applicant because of marital status
A provision that allows a policy owner to temporarily give up ownership rights to secure
a loan is called a(n)
collateral assignment
What isn't an examples of Business Continuation Plan
Deferred Compensation
A group Disability Income plan that pays tax-free benefits to covered employees is
considered
fully contributory
Questions and Answers with complete solution
A closed network plan offers a primary physician copay of $25. If a subscriber chooses
a primary care physician outside of the network, the subscriber will likely pay
100% of the billed amount
What does Coordination of Benefits allow?
Allows the secondary payor to reduce their benefit payments so no more than 100% of
the claim is paid
A waiver of premium rider allows an insured to waive premium payments if the insured
is
completely and permanently disabled
Under the Time Limit of Certain Defenses Provision, a disability policy is incontestable
after it has been in force for a period of
2 years
In what part of an insurance policy are policy benefits found?
Declarations
What type of annuity stops all payments upon the death of the annuitant?
Life annuity
A guaranteed issue insurance policy has no
medical underwriting
What is NOT a qualifying event for Medicare?
Falling below the federal poverty level
An insured has a health plan that pays established amounts in accordance with a list of
injuries, surgical procedures, or other losses. This list is called a
benefit schedule
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What
is this called?
Estate conservation
Ownership of a life insurance policy may be temporarily transferred with a(n)
collateral assignment
Respite care is able to provide
temporary relief to the patient's primary caregiver
What are employers is required to follow ERISA regulations?
A local electrical supply company with 12 employees
A policy illustration given at time of sale does NOT typically include the
names of the beneficiary
How are contributions made to a Roth IRA handled for tax purposes?
Not tax deductible
With respect to small group health benefit plans, a carrier may discontinue coverage or
may refuse to renew such a plan if the employer
fails to pay the premium prior to the end of the grace period
What is an insurance policy's grace period?
period of time after premium is due but the policy remains in force
What isn't considered to be nonforfeiture options available to policyowner
, Reduction of Premium
An insured MUST submit a proof of loss on a health insurance claim within how many
days after the date of loss?
90
What dividend option is taxable?
Accumulation at interest
When calculating the amount of life insurance needed for an income earner, what has to
be determined when using the Needs Approach?
The family's financial objectives if the income earner were to die or become disabled
What statement best describes the relationship between the premiums of a whole life
policy and the premium payment period?
The shorter the payment period, the higher the premium
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase
an extended term insurance option. When the term insurance expires,
the protection ends
What are an applicant's statements concerning occupation, hobbies, and personal
health history regraded as?
representation
Joe has a life insurance policy that has a face amount of $300,000. After a number of
years, the policy's cash value accumulates to $50,000 and the face amount becomes a
$350,000. What kind of policy is this?
Universal Life policy
In most dental plans, a deductible typically is NOT applied to
preventative and diagnostic services
What is considered to be a point of service (POS) plan?
Managed care plan
What is a corridor in relation to a Universal Life insurance policy?
The gap between the total death benefit and the policy's cash value.
Field underwriting performed by the producer involves
completing the application and collecting initial premium
What is the contract called that is issued to an employer for a Group Medical Insurance
plan?
Master policy
Kim has health insurance with a deductible of $500 and an 80/20 coinsurance. How
much will she pay if she incurs a loss of $1,500?
$700
What is illegal discrimination?
Refusing an applicant because of marital status
A provision that allows a policy owner to temporarily give up ownership rights to secure
a loan is called a(n)
collateral assignment
What isn't an examples of Business Continuation Plan
Deferred Compensation
A group Disability Income plan that pays tax-free benefits to covered employees is
considered
fully contributory
